Lower Unemployment rate due to the falling activity rate

     

Table I: Unemployment rate recalculated

	Q1 2018	Year 2018
Unemployment rate	7.1	6.9
Unemployment rate (recalculated)	7.7	7.1

Exclusive of the activity rate effect, it is 7.7% in Q1 2018 and 7.1% for 2018

CONFUSION AT EDB : Policy-making !!!

Published in Le Mauricien,9th July 2018
It comes as no surprise to us. In my article of July last year (on my blog-RChand Corner), I did point out that the EDB was being saddled with too many objectives. We felt that the EDB should focus on the formulation of economic strategy and policy and this task should be entrusted to a dedicated broad-based committee or agency, under the aegis of the Prime Minister’s office. 

The hidden figures of Budget 18-19

Summing up the budgetary debates, the PM counter argued that “Notre performance impressione Moody’s…et le FMI.” That’s a weak argument. Moody’s bases its analysis on the official figures and if they have any queries they liaise directly with the Ministry of Finance. 

Comments on "The lean budget legacy or how to really score political points " - Le Mauricien

https://www.lemauricien.com/article/the-lean-budget-legacy-or-how-to-really-score-political-points/

Please read this article in Le Mauricien -Forum page of the 18th June. It proposes A NEW APPROACH to the budget process. The Ministry of Finance must evolve from mere number crunchers bogged down in fire-fighting and routine work to proper analysts, involved in strategic thinking and research, in the evaluation and assessment of the impact of the programmes and policies and in advising government accordingly. Presently there is very little analysis of how the policies/projects/programmes taken together will impact at the national level.

BUDGET 2018-19: SHORT-TERM GAINS FOR LONG-TERM PAINS

Published in Le Mauricien, 22 June 2018

The consolidated budget deficit for 2018-19 is -3.8% of GDP (against the advice of the IMF they have recreated some off-budget special funds). If we include the realisable off-budget expenditures (my own estimates), the deficit works out to be -5.0%. Without the grants of Rs 8 billion (at what cost ?  Agalega and the amended Double Taxation Treaty!!!), the consolidated deficit peaks at a catastrophic figure of -6.7 % of GDP (assuming disbursement of the full grants amount).

The three earlier budgets: Absence of reforms

Published in Le Mauricien,13 June 2018 

Awaiting budget 2018-19, it is interesting to have a cursory look at the main aggregates and policy orientations of the earlier budgets of this government which can give us an idea what to expect and not to expect from the forthcoming budget. We have refrained from restrictively comparing one budget to another but rather analyse a budget in terms of its targets, objectives, fiscal strategy and macroeconomic framework.

Slash the Fuel taxes !!!

Published in Le Mauricien, 01 June 2018

We currently paying Rs 52.00 per litre at the pump for gasoline – but roughly 55% of that price comes from different forms of taxes/contributions namely, subsidies, road, ecology and excise and value added taxes. Fuel taxes are usually levied to correct market failures and/or to mobilize fiscal resources.